Card-based commercial payments for Mastercard and Visa are suspended by RBI.
The Reserve Bank of India (RBI) has requested that Mastercard and Visa halt all business card payments.
The banking regulator ordered these companies to halt all business payment solution providers (BPSP) transactions until further notice, according a letter dated February 8.
According to sources, these players—including a few bankers—came to the RBI on Wednesday, February 14, to explain the business model that would be used in the event of corporate card-to-business account money transfer operations.
“On Thursday, February 8, Visa received a message from the RBI on what seems to be a request for information from the industry as a whole regarding the function of business payment solution providers (BPSPs) in commercial and business payments.Visa stated via email that “we are to hold all BPSP transactions in abeyance as part of that communication.”
The statement further stated that the RBI’s PA PG (payment aggregator/payment gateway) standards govern and license BPSPs. “In order to guarantee compliance, Visa is actively involved and will keep having conversations with the RBI and other ecosystem partners. It further stated, “It might be best to send any additional queries you have to the BPSPs.
Realated video:RBI Orders Visa and Mastercard Card Networks To Stop Processing Payments Using Commercial Cards | CNBC TV18 (CNBCTV18)
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